As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed

Arkane Lyon, the French studio behind acclaimed games like Dishonored and Deathloop, faces potential closure by November 13, 2026, unless a buyer can be found. The studio was caught up in Xbox’s massive restructuring announced in July, which included 3,200 job cuts across the division. Microsoft informed Arkane’s management on July 16 of its intention to close the studio.

However, because Arkane is headquartered in Lyon, France, French labor law requires Microsoft to conduct a three-month buyer search before closure. The Florange Law mandates consultation periods and attempts to find a purchaser for companies with over 1,000 employees. The 217-person studio began the search process in summer, with the consultation period ending in mid-November.

According to French outlet Le Monde, negotiations have been “going badly,” though “several forms of takeover” are reportedly under consideration. Worker unions are actively involved, attempting to negotiate better terms and exploring options that could include re-employing affected staff at other Xbox studios or potentially pursuing legal action.

Arka Lyon is currently still developing Marvel’s Blade, though production is nearing completion. The situation highlights how French labor protections provide significantly more leverage for workers and studios compared to closures announced by Microsoft elsewhere.

As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed

Sources